However, the council now has a significant ally in the Maori King Tuheitea - a powerful figure among Waikato tribes - who will make a final decision on whether a Maori Council-led legal challenge will proceed.
Mr English said the Government did not want to pick a fight with the movement.
"We're not looking for a stoush with anybody. It's up to Maori who have particular rights and interests in water to sort out who speaks for them.
"Some of them wanted the King to speak for them, that's one thing. The Crown, though, has to be pretty clear that as we go through the issue of dealing with water rights and interests that we're actually speaking with people who hold rights and interests and any arrangements we come to actually settle those rights and interests."
The Herald understands the council may indicate late this afternoon whether it will proceed with its court challenge.
Co-chairman of the Maori Council Sir Edward Taihakurei Durie yesterday said it appeared the matter "is destined for the courts, not because that outcome is desired by New Zealand Maori Council but because the Government is refusing to progress resolution of the central issue - residual Maori proprietary rights".
The council was also discussing the matter with two teams of lawyers, one led by Queen's Counsel Helen Cull and another by former deputy solicitor-general Matthew Palmer.
While the council received Legal Aid funding for its Waitangi Tribunal claim this year, Prime Minister John Key said it would not receive any taxpayer funding for a court challenge to the Mighty River sale.
It was the council's legal right to take the action, "but it's also their legal responsibility".
Maori Council solicitor Donna Hall said funding for any court action would be sought from various iwi.